Justify the following statement:

Certificate of Incorporation is like a Birth Certificate of a company.

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1 Answers

  • Certificate of Incorporation is issued by ‘Registrar of Companies, after successful completion of the Incorporation step of formation.
  • It is proof by which company comes into existence.
  • An incorporation Certificate brings legal status to the company.
  • After getting the Incorporation Certificate company achieves the status of ‘Perpetual Succession’.
  • The company can sue and can be sued after getting an Incorporation Certificate.
  • The company can enter into various contracts.
  • After getting an Incorporation Certificate, the company is considered an artificial person.
  • Thus, a Certificate of incorporation is like a Birth Certificate of a company.

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